If you’re above a certain income, you may wish to look into it soon.
Driving by a car dealership this year, you may have noticed a huge difference. The inventory of many lots were empty. While some dealerships are starting to stabilize a bit more, the fact remains that both new and used car supplies remain somewhat constrained, including electric vehicles. However, thanks to the Inflation Reduction Act this year, your next EV or energy efficient upgrades may now be a little more affordable. Though if you meet a certain income bracket, you might want to look into taking the plunge now.
According to Jonathan Pond, the Inflation Reduction Act brought back a $7,500 tax credit for a new electric vehicle purchase and extended its availability to 2032. However, if you’re an individual with an income higher than $150,000 or $300,000 for couples, then you’ll be ineligible for the credit. Pond also says that new qualifying vehicles will also get capped based on their sales price – $65K for sedans and $80K for SUVs. Other phased-in requirements such as where final assembly of the vehicle as well as battery production being in the US will also apply.
If you would prefer to go the used car route, a new tax credit of $4,000 is available for electric or hybrid vehicles that are selling for less than $25K, and are at least two years old. Income restrictions will also apply.
When the lease on our current car expired, I did opt to buy our current mode of transportation outright. Needless to say though, it seems EVs are going to only continue to become more mainstream.
Were you able to take advantage of the above tax credits, or have done so in the past when it comes to EVs? What’s been your experience? Is there an EV you have your eye on? Be sure to leave a comment below, which helps support our site engagement! Thank you in advance!